How to Do Upselling? Ft. McDonald's SOT

Upselling is a powerful sales technique that can significantly boost your revenue when executed correctly. One of the masters of this art is McDonald's, particularly through their Self-Order Terminals (SOTs). These terminals have not only enhanced the customer experience but also strategically increased the average order value. Let's dive into the world of upselling with insights from McDonald's.

The Power of Self-Order Terminals

McDonald's Self-Order Terminals have been a game-changer in the fast-food industry. Since their introduction, these terminals have become a staple in over 40,000 McDonald's restaurants worldwide. The influence of these terminals on increasing profits is undeniable. In Germany alone, they have boosted profits by about 15%​.

Design Influences and Marketing Strategies

1. Eye-Catching Menus: When you step up to a McDonald's terminal, the first thing you notice is the high-resolution images of their most expensive items, like the Maharaja Macs or the Double Quarter Pounder. This sets a reference value, making other items seem more affordable in comparison.
2. Nudging and Dark Patterns: McDonald's uses subtle design techniques to nudge customers towards larger purchases. For instance, the terminals often display menu items in a way that requires scrolling to find the cheaper options. The more expensive items are at eye level, similar to how supermarkets place premium products at eye level on shelves.
3. Engaging Visuals and Animations: Once you add an item to your cart, the terminal often shows a colorful animation, rewarding you and encouraging you to continue adding more items. This positive reinforcement can make you feel good about purchasing more than you intended.

Upselling and Cross-Selling Techniques

1. Meal Bundles: The terminals frequently suggest making your meal a combo. For example, adding fries and a drink to your burger for a slight upcharge seems like a great deal to many customers, significantly increasing the overall order value.
2. Additional Items: During the ordering process, terminals suggest additional items like nuggets or desserts. These suggestions are strategically timed to appear just as you’re about to finalise your order, making it easy to add them impulsively.
3. Hidden Total: The total price is often displayed subtly in a corner of the screen, making it less prominent than the appealing images of the food. This design choice helps minimise price shock and encourages customers to focus more on the food than on the cost.

Data-Driven Optimisation

McDonald's employs A/B testing to optimise their terminal interfaces. By showing different versions of buttons, layouts, and recommendations to various customers, they gather data on what drives the highest sales. This continuous optimisation helps them refine their upselling strategies to maximise effectiveness​ .

The Results?

These upselling techniques have led to remarkable results. In the first quarter of 2024, McDonald's reported a 1.9% increase in global comparable sales, marking 13 consecutive quarters of positive growth​. The implementation of Self-Order Terminals has been a significant contributor to this success, driving higher average order values and enhancing customer satisfaction.

Tips for Implementing Upselling Strategies

1. Highlight Premium Products: Just like McDonald's, make sure your most profitable items are prominently displayed.
2. Bundle Offers: Encourage customers to upgrade their orders with meal bundles or add-ons.
3. Use Engaging Visuals: Positive reinforcements like animations or rewards can encourage customers to add more to their orders.
4. Optimise Interface Design: Regularly test and refine your ordering interface to find the most effective layout for upselling.